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KEARNY MESA, CA-Argus Realty Investors LP has extended its San Diego area footprint with a recent office buy. In the deal, San Clemente-based Argus picked up Telecom Business Center for $22.9 million. The firm acquired the site from Franklin Street Partners of Boston for $225 per sf.Developed seven years ago by Sentre Partners, who sold the buildings to Franklin Street Partners, the property counts 101,176 sf in three single-story office buildings. The property is 100% leased to four tenants: Nextel Communications, Cambridge Administrative Services, XO Communications and Reva Medical.According to Jean Murphy, Argus senior vice president of West Coast acquisitions, the space breakout includes: Nextel, 13,000 sf; XO Communications, 51,000 sf; Cambridge, 25,000 sf; and Reva Medical, 13,000 sf.Murphy tells Globest.com the buildings, which are located at 5751, 5761 and 5771 Copley Dr., were originally going to be developed as “flex/warehouse space, but the project shifted its focus to office, R&D, and telecom buildings,” Murphy says. The facilities are wired with high-speed, broadband data transmission systems.Argus chairman and CEO Dick Gee says that Telecom Business Center’s high tech capabilities were among the firm’s chief reasons for the acquisition. “Technology and telecommunications are two powerful San Diego engines,” Gee says.In the acquisition, Brian Eisner, a principal with George Elkins Mortgage Banking Co., arranged a $17.75-million eight-year loan fixed at 5.81% with first three years interest only. Matt Belshin, a partner in San Diego-based Sentre Partner, represented the seller. Murphy handled the transaction for Argus.The San Diego office of CB Richard Ellis will handle all leasing and property management, with SVP Brett Gossett, spearheading that activity. Murphy says the leases are set up so that half of them are locked up long term while the other two will be rolling off soon.”We liked the property’s location and flexibility,” Murphy says. “The property has numerous store fronts and we could break the space out very easily.” However, she adds that Argus will continue to weigh various options during its long-term ownership of the property. “We plan an eight-year hold,” Murphy says.For Argus, Telecom Business Center is the firms’ third San Diego area acquisition. Earlier this year, the firm picked up Chesapeake Park Plaza for $22.1 million as part of a TIC deal. The firm and 24 of its tenant-in-common investors bought the property from Portland, OR-based ScanlanKemperBard Cos.Located at 9665 Chesapeake Dr., two blocks from Interstate 15, the four-story, 93,213-sf class A office property counts 16 tenants and was 96% leased. As part of the deal, Argus secured a seven-year loan for 78% of the purchase price, interest only for the first four years with a 30-year amortization from an institutional lender.

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